Abstract

This research extended the findings on the effect of merge and acquisition by applying social identity theory. Various (correlates) of merge and acquisition were investigated using 864 South Korean employees. This investigation had three purposes. The first was to develop social identity scales concerning merger organization situation. The second purpose was to compose pre-merger organizational identity management strategy scales and identify its factor structure. Finally, it is identified that effect of status perception and the legitimacy and stability of status difference between employees from merging and merged organization on pre-merger organizational identity and pre-merger organizational identity management strategy. The main results were as followed. First, three factors (group self-esteem, group identification, group involvement) were found using exploratory and confirmatory factor analysis in the first study. Second, four factors (individuality, assimilation, hostility behavior, the pursuit of in-group superiority) were identified in the second study. People who had merged relative to people who had been merged think of their status high. At the same time, the more stable and legitimate people who think of their status high perceived, the more they were likely to have a high pre-merger organization identity and use collective behavior strategy. However they were less likely to use individual strategy. In contrast, when people who are relatively low status perceived their current status legitimate, they felt low pre-merger identity and likely to use individual behavior strategy. Finally, regardless of status difference, when people had a high pre-merger organization identity, they used less individual strategy and selected more collective behavior strategy.